A Sensible Approach to the Market

Whether you decide to approach the stock market as an investor or as a trader, or by combining both disciplines, your success is going to rely on how effectively you gain experience and knowledge and put your resources to work.

Resources include your income and investment cash levels. Of course, the more money you have to place into investments and trades, the more market exposure you can gain. However, that will not always mean that your portfolio will outperform smaller ones. The exposure to profitable opportunities is always accompanied by an equally important exposure to possible losses.

The key to market success is found in improving not only your analytical skills, but also your timing.

Entry and exit timing can never be perfect, but when you discover how to analyze both fundamental and technical indicators with skill, you will improve your rate of success.

By Michael C. Thomsett

Michael Thomsett is a British-born American author who has written over 75 books covering investing, business and real estate topics.